FDA Awards Booz Allen Hamilton $196M for Digital Transformation Services
Contract Overview
Contract Amount: $196,008,581 ($196.0M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2022-09-30
End Date: 2026-09-25
Contract Duration: 1,456 days
Daily Burn Rate: $134.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE AWARD - FDA CDRH DIGITAL TRANSFORMATION 2.0 - BOOZ ALLEN HAMILTON
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $196.0 million to BOOZ ALLEN HAMILTON INC for work described as: BASE AWARD - FDA CDRH DIGITAL TRANSFORMATION 2.0 - BOOZ ALLEN HAMILTON Key points: 1. Booz Allen Hamilton secured a significant contract for digital transformation. 2. The contract falls under Computer Systems Design Services (NAICS 541512). 3. This award represents a substantial investment in modernizing FDA's digital infrastructure. 4. The firm fixed price contract aims to control costs over the performance period.
Value Assessment
Rating: good
The $196 million award over approximately four years suggests a competitive pricing strategy. Benchmarking against similar large-scale digital transformation contracts is necessary for a definitive assessment, but the firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors vie for the award.
Taxpayer Impact: The competitive award process is expected to yield good value for taxpayers by ensuring fair market pricing for essential digital transformation services.
Public Impact
Enhances FDA's ability to process and analyze data more efficiently. Improves public access to health information and regulatory processes. Supports modernization of critical healthcare infrastructure. Potential for improved public health outcomes through better data utilization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is substantial, requiring ongoing monitoring.
- Scope creep could increase costs beyond initial estimates.
Positive Signals
- Firm fixed price contract provides cost predictability.
- Awarded through full and open competition.
- Focus on digital transformation aligns with government modernization goals.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is critical for government modernization efforts, with benchmarks varying widely based on project scope and complexity.
Small Business Impact
The awardee, Booz Allen Hamilton, is a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The firm fixed price contract and full and open competition provide a degree of oversight. Continued monitoring by the agency will be crucial to ensure deliverables meet expectations and stay within budget.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for scope creep
- Integration challenges with legacy systems
- Cybersecurity risks
- User adoption and training needs
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $196.0 million to BOOZ ALLEN HAMILTON INC. BASE AWARD - FDA CDRH DIGITAL TRANSFORMATION 2.0 - BOOZ ALLEN HAMILTON
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $196.0 million.
What is the period of performance?
Start: 2022-09-30. End: 2026-09-25.
What specific digital transformation capabilities will this contract enable for the FDA?
This contract is expected to enable the FDA's CDRH (Center for Devices and Radiological Health) to modernize its IT infrastructure, improve data management and analytics, enhance cybersecurity, and streamline regulatory processes. The goal is to accelerate device review, improve post-market surveillance, and increase overall operational efficiency through advanced digital tools and platforms.
What are the primary risks associated with this large digital transformation contract?
Key risks include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns. Technical challenges in integrating new systems with legacy infrastructure, cybersecurity vulnerabilities, and ensuring adequate user adoption and training are also significant risks that require proactive management.
How will the success of this digital transformation be measured and ensure effectiveness?
Success will likely be measured by key performance indicators (KPIs) related to improved data processing times, reduced device review cycles, enhanced system uptime and security, and increased user satisfaction. Regular performance reviews, milestone achievements, and post-implementation audits will be critical to assess effectiveness and ensure the transformation meets its intended objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: C-90364-O
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $310,004,561
Exercised Options: $196,008,581
Current Obligation: $196,008,581
Actual Outlays: $154,989,458
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $94,633,787
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSN316201200008W
IDV Type: GWAC
Timeline
Start Date: 2022-09-30
Current End Date: 2026-09-25
Potential End Date: 2027-09-26 00:00:00
Last Modified: 2026-03-03
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